Minister of Ukraine Volodymyr Groysman during an extraordinary Cabinet’s
meeting dedicated to considering the draft Law on the State Budget on Thursday
unveiled the main macroeconomic indicators of the budget for 2017.
So, the Government
envisages a budget increase in 2017
up to nearly UAH 876 billion which is more against the 2016 showing by 16.9
addition, the Government forecasts GDP
growth rate of 3%.
expect recovery of the economy. We see that our economy is starting up, and our
task is to make this process irreversible and to accelerate economic boost. as a result of this process we should do our utmost to
ensure every Ukrainian citizen to feel that life is changing in his/her income,
salary, and it is an important priority line", said Volodymyr Groysman.
The structure of earnings remains standard.
The Government does not envisage an increase in the total budget revenues at
the account of higher tax rates.
believe that we should avoid creating conditions for squeeze on business, and
therefore we will not support raising national contributions. It is possible to
expand the base, to determine a stance regarding rents, but as for the national
taxes, we won’t stand for their increase", said the Head of Government.
The budget deficit for 2017 shall not
exceed 3%, and makes up UAH 77.5 billion.
Government envisages improvement of
social standards. In 2017 the Government lays an increase in the draft
budget by 10.1% - as of December 1, 2017, the minimum wage and the living wage
will be UAH 1762, compared to UAH 1600 as of 1 December 2016.
Minister reminded that in 2016 the Government had managed to raise the
standards by 5% from May 1, and from December 1, these figures grew by 10%.
not sufficient, but this is a step that we could do, and it meets the demands
of our economy. It is vital to ensure we take into account real economic
growth," he said.
goal of our Government is to generate economic boost. Economic growth will
accumulate resources to be directed to improvement of welfare standards and
improvement of living standards, as well as modernization of our country. It is
time for an efficient and professional approach to the formation of the budget
of the country", stressed the Head of Government.
added that the Government is engaged in elaboration of proposals to reform the
pension system and the remuneration system in Ukraine, and will present it
about the top priorities fixed by the Government in the draft 2017 Budget,
Volodymyr Groysman named, in particular, the national defense and security,
reconstruction and overhaul of roads, preserving of decentralization, the
introduction of large-scale energy efficiency measures, support of the
agricultural sector and education.
Defense and security of the state for 2017. The total budget intended for this
sector in 2016 – UAH 114 billion, in 2017, the budget spending will be by UAH
14.5 billion more amounting to UAH 129 billion.
of finance was agreed at the Council of National Security and Defence, he said. So, the expenses planned for monetary
security of the military grow by UAH 8.4 billion.
Ukrainian army must become a real army, with proper maintenance, monetary
assistance, provided with advanced weapons. Therefore, our task is to invest in
our security," stressed the Prime Minister.
Roads. Budget expenditures are planned at the level
of UAH 14.2 billion from excise tax to the Road Fund that is to be set up as a
tool for effective road management in the country. Up to US $ 1 billion is the
sum expected to raise from international financial
must draft a strategy of Ukrainian road development. We should stop building
roads that lead nowhere, we need roads that are necessary for the Ukrainian
citizens, Ukrainian economy and for promoting of our transit and logistics
potential", urged the Prime Minister.
Energy efficiency. The Government proposes to attract UAH 800
million of budget funds and about EUR 100 million from international donors to
create an Energy Efficiency Fund. "In fact, we can count on UAH 3.5 - 4
billion to be directed to the Energy Efficiency Fund, as an open tool of use of
resources to ensure implementation of energy efficiency measures, noted
that the Government had set an ambitious goal of restoring national gas
production, thereby enhancing energy security and competitiveness in foreign
markets. Hence, throughout 4-5 years Ukraine will become a completely energy
Support for agrarian industry. The Government has plans to budget
UAH 5.5 billion to support agricultural producers, for example, for the
modernization, purchase of machinery, Ukrainian tractors and trailed equipment
to improve productivity and competitiveness of agrarians, announced the Prime
take care of small and medium-sized farms providing them with opportunities to
produce more products, to do processing, to generate and utilize technologies”,
Decentralization. Volodymyr Groysman noted: “Our position is as
follows, and, basically, that’s why I came to the central government - to
launch decentralization so that each Ukrainian community could get sufficient
financial resource, sufficient opportunities and full responsibility for the
state of affairs in their locations", said the Head of Government.
Now we need
to reinforce the responsibility of local authorities, in particular in energy
efficiency sector. The Government considers it necessary to devolve authorities
for maintenance of the housing and communal services domain, including
educational institutions and healthcare facilities. The sum worth UAH 15
billion is envisaged in the budget "for those communities that need assistance
A size of
state support in the framework of the State Regional Development Fund is to be
raised up to UAH 9 billion, at that, UAH 1 billion out of this amount will be
spent to support the united territorial communities and UAH 8 billion - on the
socio-economic development of territories.
three important tools aimed to become a real investment in the development of
the local economy", said Volodymyr Groysman.
A reform of coal industry. There is planned UAH 1.8 billion along two
lines of expenditure, not just one as before: the restructuring of mines and
support for miners. The Head of Government accentuated that retrofitting of the
industry would raise competitiveness of it in the coal market.
Education. The Government intends to raise education
funding by UAH 21.1 billion.
the salary of teachers in secondary schools will up by an average of over UAH
expenditure on scholarships is to increase by UAH 576 million: UAH 5.816
billion in 2017 against UAH 5.24 billion in 2016.
Healthcare. The government plans to increase the funding
by UAH 8.2 billion in comparison with indicators of 2016.
Minister pledged the Government would ensure the supply of drugs. In this
context, the Government offers to allot UAH 5.9 billion for the centralized
procurement of medicines through international organizations and to apply for a
Global Fund resource, enabling the country to approach close to
100%-implementation of programmes for the procurement
of medicines for Ukrainians."
addition, an average growth of 20% in salaries of health workers was planned in
the draft budget.
Culture. In the
draft budget the Government provided for the increase in spending by UAH 1
worth UAH 500 million is intended for the development of film industry in
line amount was planned for the gearing up and hosting of the Eurovision Song
will do everything we should and next year our unique opportunity to present
the country at such a difficult time will be demonstrated and high
organizational level of the contest ensured", said Volodymyr Groysman.
also included funds for repair and restoration activities in National
Historical Memorial Preserve "Babyn Yar", the arrangement of the National memorial complex
to the Heroes of the Heavenly Hundred in the Museum of the Revolution of
Dignity, as well as the construction of the second phase of the National
Museum “The Memorial in Commemoration of Famines' Victims".
Enhance image of Ukraine abroad. The Government provides in 2017 by
UAH 1 billion to raise funding for the diplomatic
the frontline of struggle against the Russian aggressor, Ukraine has another
frontline - Ukrainian diplomacy who should feel government support. We should
improve the performance of our diplomatic service, as the frontline is where
Ukraine’s interests in the global world are defended", summed up the Prime